Court approves settlement between Allstate and minority customers

Court approves settlement between Allstate and minority customers

(February 20, 2007) Attorneys representing Allstate's minority customers announced today, a Texas Federal Court issued final approval for a nationwide class action settlement regarding its credit scoring practices.

"This is a great day for Allstate's minority customers," said lead plaintiff's attorney Christa Collins, of the law firm James, Hoyer, Newcomer & Smiljanich, PA. "This is a groundbreaking settlement, because Allstate has agreed to change the way it uses credit information to price insurance. We believe this change significantly benefits Allstate's minority customers."

According to the court, Allstate has millions of African American and Hispanic customers who are affected by the settlement nationwide. "The bottom line," said Collins, "is many of Allstate's minority customers stand to save significant dollars in their premium payments as a result of the credit scoring changes."

The case was filed in 2001 in U.S. District Court, Western District of Texas, San Antonio Division. It was brought by six Allstate customers who represented a nationwide class of African Americans and Hispanics. These individuals alleged they were discriminated against when issued automobile and/or home insurance, by being charged higher premiums based on Allstate's use of credit scoring.

"We're very proud," said lead plaintiff Jose DeHoyos. "We're very happy to be part of something that will really make a difference, not only for ourselves, but for so many others in the same situation."

In a lengthy opinion, Federal Judge Fred Biery concluded that settlement was "powerful" and cited that it allowed "individuals as private litigants to challenge and ultimately change corporate practices they regard as discriminatory and as a result to bring about important social change."

As a result of the settlement, minorities will benefit from the following:

- Allstate will implement a new credit scoring formula.

- Allstate will notify eligible policy holders that they can participate in an appeals process that may result in a premium reduction, when their credit score was negatively affected by life hardships like divorce, loss of a job, death of a spouse, etc.

- Class members may be eligible for a 50 to 150 dollar payback on prior premium payments based on how their credit score was affected by the old formula.

- The National Urban League and National Council of LaRaza will distribute educational credit information developed through the settlement.

"It's been a long fight, but well worth the results," concluded lead plaintiff's attorney Collins.

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Click here for free delivery of the Target Market News Bulletin You'll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media Black Stats Frequently requested data on African American consumers Black Buying Power: $679 Billion (2004) Black U.S. Population: 38.3 million Top Five Black Cities - New York - Chicago - Detroit - Philadelphia - Houston Top Five Black Metros: - New York-New Jersey - Washington-Baltimore - Chicago-Gary - Los Angeles - Philadelphia Top Five Expenditures: - Housing 110.2 bil. - Food 53.8 bil. - Cars/Trucks 28.7 bil. - Clothing 22.0 bil. - Health Care 17.9 bil. Click here for more stats from "The Buying Power of Black America." ______________________ Get quick access to key U.S. Census Bureau Data Click here to go to African-American Census Bureau data _____________________ Copyright `© 2006 by Target Market News Inc.` All rights reserved Business address: 228 S. Wabash Ave. Suite 210 Chicago, IL 60604 t. 312-408-1881 f. 312-408-1867 info@targetmarketnews.com	Court approves settlement between Allstate and minority customers (February 20, 2007) Attorneys representing Allstate's minority customers announced today, a Texas Federal Court issued final approval for a nationwide class action settlement regarding its credit scoring practices. "This is a great day for Allstate's minority customers," said lead plaintiff's attorney Christa Collins, of the law firm James, Hoyer, Newcomer & Smiljanich, PA. "This is a groundbreaking settlement, because Allstate has agreed to change the way it uses credit information to price insurance. We believe this change significantly benefits Allstate's minority customers." According to the court, Allstate has millions of African American and Hispanic customers who are affected by the settlement nationwide. "The bottom line," said Collins, "is many of Allstate's minority customers stand to save significant dollars in their premium payments as a result of the credit scoring changes." The case was filed in 2001 in U.S. District Court, Western District of Texas, San Antonio Division. It was brought by six Allstate customers who represented a nationwide class of African Americans and Hispanics. These individuals alleged they were discriminated against when issued automobile and/or home insurance, by being charged higher premiums based on Allstate's use of credit scoring. "We're very proud," said lead plaintiff Jose DeHoyos. "We're very happy to be part of something that will really make a difference, not only for ourselves, but for so many others in the same situation." In a lengthy opinion, Federal Judge Fred Biery concluded that settlement was "powerful" and cited that it allowed "individuals as private litigants to challenge and ultimately change corporate practices they regard as discriminatory and as a result to bring about important social change." As a result of the settlement, minorities will benefit from the following: - Allstate will implement a new credit scoring formula. - Allstate will notify eligible policy holders that they can participate in an appeals process that may result in a premium reduction, when their credit score was negatively affected by life hardships like divorce, loss of a job, death of a spouse, etc. - Class members may be eligible for a 50 to 150 dollar payback on prior premium payments based on how their credit score was affected by the old formula. - The National Urban League and National Council of LaRaza will distribute educational credit information developed through the settlement. "It's been a long fight, but well worth the results," concluded lead plaintiff's attorney Collins. Go to Target Market News homepage	The African-American Book Publishing Authority Now in its eighth year of publication, Black Issues Book Review is the only nationally distributed magazine devoted exclusively to covering the latest news and reviews on black books. BIBR also provides up-to-date news on forthcoming author signings, book fairs and book clubs. Want this issue? Get it with your new subscription. Click Here A TARGET MARKET NEWS PUBLICATION _________________________ Click here to read more ________________________ 12th Annual Edition Available Latest 'Buying Power' report shows black consumers spending more on home life As the American economy continues to move sluggishly, African-American households are curtailing their spending in many categories, including food, clothing and basic household items, while investing more in home repair, home entertainment and consumer electronics. Although they are trimming back, black consumers are still spending more than their white counterparts on most of these products. Story and statistics continued _________________________ SUBSCRIBE TODAY! The trade publication for in-depth coverage of Black Consumer Marketing and Media news